Minneapolis Fed President and CEO Neel Kashkari recently spoke about the current state of the economy.
Kashkari expressed skepticism about the need for a Central Bank Digital Currency (CBDC) in the United States. “There is no CBDC use case that makes any sense to the American people,” Kashkari said, adding that he was skeptical about why the United States would need a CBDC.
Despite the ongoing debate about digital currencies, Kashkari remains optimistic about the dollar’s role in the world. He believes that the value of the dollar in the long run is determined by its economic competitiveness.
Addressing concerns about a potential recession, Kashkari assured that a recession is not his baseline scenario. He argued that the yield curve is not a reliable indicator of a recession because disinflation is mostly due to the Fed.
Regarding Bitcoin, Kashkari spoke very clearly. He described Bitcoin as ‘just another risky asset’ and argued that it was not an inflation hedge and that there was still no justification for its existence. He also added that Bitcoin has turned out to be a terrible inflation hedge.
*This is not investment advice.